5 Things Bitcoin Owners Must Do When Estate Planning

When it comes to estate planning, very little has been mentioned about bitcoin. While bitcoin is subject to wills and revocable living trusts like any other asset, there are some special considerations. Most seasoned holders of bitcoin are aware of IRS Notice 2014-21. For those unaware, the notice holds that for US tax purposes, bitcoin is to be treated as property rather than currency. The notice is wrongheaded, foolish and probably was issued with intent to slow down bitcoin adoption. Nonetheless, we’re stuck with it until bitcoin adoption increases to the point where the IRS recognizes it as a currency. Much ink has been spilled about the more obvious consequences of bitcoin’s classification as property, namely: Whenever bitcoin is spent on goods or services, the spender must recognize taxable income or loss on the difference between tax basis (usually the price at which he acquired the bitcoin) and the fair market value of the bitcoin at the time spent. Bitcoin miners must recognize ordinary income equal to the fair market value of the bitcoin mined at the time of mining. If your employer pays you in bitcoin, such payments must be reported on your W2 and are subject to tax withholding in US dollars. Beyond these more obvious consequences, however, there are some hidden estate planning traps when it comes to the death or incapacity of a bitcoin account holder. To avoid these problems, here are five steps you need to take now in your estate plan. 1. Get your step-up in your estate plan, and watch your step Because bitcoin is property, when a bitcoin holder dies, the beneficiaries...

CoinPayments.net – Online Multi-Coin Payment Processor

Accept crypto currencies now Bitcoin, Litecoin, Doge, Darkcoin, PeerCoin and 55 other coins are featured with this service – meaning they touch base with whatever payments you want to make or accept on your website. But what is it? In a nutshell, CoinPayments.net acts much like PayPal – a platform which allows you to pay for goods and services without having to directly use your bank account or credit card information. With the surge of new cryptocoins on the web, you’d better keep an eye out on this service as it may be the place to go in the near future for online transactions. How CoinPayments.net Works It’s pretty easy – creating an account is free and you’ll only be charged when transactions are being made. There’s a low 0.5% flat fee on all transactions going in and out of the platform. This is a lot lower than the fees perceived by similar services. There are no other fees associated with CoinPayments.net, aside from the aforementioned flat fee. They provide you with all the tools needed to securely, easily and without any hassle implement their payment method on any website. Once the payment is reached for, the user will be directed to their website where they’ll need to confirm payment, depending on what coins they are using. What’s more – everything is encrypted thoroughly, so there’s no security risk whatsoever. This is very important in today’s day and age, especially when it comes to cryptocoins which themselves are a way to protect a user’s identity.   Over 55 Supported Coins You can accept them all, or just one; that’s your...

CoinMx Review – Buy Bitcoins with a Credit Card or Cash!

July 2015 update: Coin.MX has suspended its business due to charges brought against the owners. CoinMX is one of the leading Bitcoin exchanges allowing you to purchase Bitcoins with a credit card today. I’ve heard a lot about it and decided to finally try it for myself. This review will describe my personal experience with the exchange as well as different opinions of other CoinMX customers I’ve managed to gather from the web. CoinMX is an american based Bitcoin exchange based in Dallas Texas. It was established in early 2013 and has been accepting customers worldwide since. The first thing I’ve noticed is that other than a physical location there are no individuals shown on the website who actually run the site. This always sets off an alarm for me as many of the scams I’ve encountered have this characteristic. However I’m not going to eliminate an exchange based on that alone. Verification is a bitch, but things go smoothly after.. Once you create an account on CoinMX you’ll need to verify your identity. Unlike other exchanges CoinMX asks you to shoot a video of yourself holding a government issued ID (e.g. passport). This was a pretty awkward moment in my life as I’ve never been requested to shoot a video for verification but I complied. It took about 2 days to get verified but I believe that if you email them right after submitting the video you can get it done in less than 12 hours. Once I got verified things went pretty smooth. Deposits were timely and withdrawals of Bitcoins were instant. I remind you NEVER to leave Bitcoins lying...

Borrow and Invest Bitcoins with P2P Lending Services

The Facts BTCJam vs. BitLendingClub I wanted to compare BTCJam and BitLendingClub, there are many opinions out there and I have my own.  So above are the facts about the two different sites.  Below you will find my opinions on the two for Borrow and Invest.  Please provide comments on the what you think about the sites and please let me know if I missed anything. Look and Feel of the Sites – BitLendingClub is better, but its close Both sites allow you to easily invest and borrow in Bitcoin. However BitLendingClub, just seems to make it easier.  I prefer the design of BLC over BTCJam, but that is not to say the BTCJ is bad.  BTCJ does have issues with the Investments and Payment screens.  If you are a serial investor of loans like me, and you have been on the platform a while you rack up loans.  I have over 250 loans on my investments page and over 2100 payments pending on my payments page.  This has caused some serious issues with loading and timeouts.  BTCJ has a notes marketplace which allows you to sell your loans, BLC does not offer an equivalent.  The notes marketplace is difficult to find tough and I feel it should be more prominent. Information Verification – BTCJam but BitLendingClub is improving They both offer roughly the same verification process.  The way that the verification is tied to credit rating on BTCJam is better than BitLendingClub’s Identity Score.  This for me is hands down better at reviewing loans and can quickly weed out loans.  On BLC I feel I am mostly a coattail investor, looking...

Team Virus Cryptolocker : State Police Put on Alert Network User

The many reports coming from the Internet on this new virus that has raged now for a bit of time on the web, has led police State to increase prevention measures through every tool to ensure you try of those who surf the Net. In this context, the Postal Police and Communications concluded, just in the last few hours, an operation that allowed to thwart a criminal organization for criminal association aimed unauthorized computer access, online extortion and money laundering of illicit proceeds realized by the spread of the virus ” Cryptolocker “, which fell victim to private citizens but also companies, private and public. The scenario is as follows: the unsuspecting user receives on their email message that provides information about alleged shipments in its favor or a link on a purchase made on line by other services. Clicking the link or opening the attachment (usually a pdf document), the virus that is injected immediately encrypts the contents of computer memories, even of those which may be networked. At this point we realize the blackmail of cyber criminals that require users to re-open the file and regain possession of their documents, the payment of a sum of several hundred euro in bitcoin against which to receive e-mail a program for decryption. It is important not to give in to blackmail, because it is not certain that after payment is returned encrypted files! Keep updated software for your computer, obtain a good antivirus, always make a backup, or a copy of your files, but also pay attention to the email we receive, especially if expectations and avoid clicking on...

Bitwage Releases Cloud Savings : Gold & Bitcoins in a Cloud?

As national economies and currencies are folding like tents worldwide. Financial experts are advising to invest in Gold and Silver to protect your savings. Now Bitwage is looking to take Bitcoin and Gold to the cloud by offering a new service. Bitwage enters the Gold & Silver Market Bitwage provides a  great way for employees, freelancers, and contract workers. They can get paid their salaries in bitcoin instead of fiat currency. It is a convenient option for the person who wants to use bitcoin as a part of their investment strategy. Any percentage of a person’s salary can be quickly converted into bitcoin through Bitwage. Now Bitwage has partnered with Bitreserve to create what they call “Cloud Savings.”  This gives customers the option to choose any portion of their salary to be split and held in 9 currencies and 4 precious metal, including US dollars, bitcoins, Euros, Pounds, Mexican Pesos, Indian Rupees, Gold, and Silver. While in the long-term it is preferable to obtain physical possession of precious metals, if you invest in precious metal commodities. The two companies have created an ETF that provides great financial flexibility to the user. BitWage COO Jonathan Chester explained to CoinTelegraph: “So when you are paid (thru Bitwage) in Gold, it is better to think of it as getting paid in a Gold ETF.  The main difference is that this Gold ETF is so liquid that you can buy goods and services directly from funds held in the ETF. Or you can even load our debit card with the value held in this Gold ETF (although this process is a little manual at the moment). ...